Obstacles to Exporters

At company level

Raw material is diseased; its cost is high and it is of sub standard. As a result, low quality of furniture is produced. Companies have to suffer severe loss.

Quality of labor is deteriorating, as they do not get proper training. Consequently, the quality of work produced is low.

This wood is very important, there’s no replacement. As a result, sales are affected and importing is done at a large scale in order to meet this need. It costs four times more.

Transportation rates are increasing. Where previously a company would have sent 4 containers, it ends up sending only two. Diesel/petrol rates have also increased.

Lack of space is a problem. Because of small area, less pieces of furniture are produced. There’s 40% loss and as a result all opportunities are lost. If more material is produced, it is wasted because there is no space for its storage

At country level

Government departments follow red tapism, blackmailing, bribery, corruption, taxation and have lengthy procedures for exporters. Companies as a result are affected badly.

No proper guidance is given to companies regarding financial incentives given by the government. The attitude of banks is very bad and they have cumbersome procedures for loans. As a result, companies have no knowledge and they fail to make use of finance facilities. In addition, the government is not providing any subsidy.

No incentives given by the government to make use of the latest technology. As a result, all companies are using traditional methods and the quality of furniture is much below the level of global furniture, especially for “Seasoning” which requires latest machinery, but unfortunately the natural method is used, which is very time-consuming. Some exporters use the wood that has moisture in it. This results in bad piece of furniture in the end. Sometimes due to moisture, it breaks down even after delivery, which ruins the image of Pakistani furniture industry.

Material from China is being used commonly. The government itself is promoting this trend. Local market is decreasing, while no efforts are being made by the government to improve this situation.

Customs examination done is very severe, whereby furniture is broken/torn for inspection. As a result all material has to be made again. A huge loss is incurred on the companies. Some companies give money and get their material cleared from the Customs. In this process, even the poor quality material reaches foreign buyers and the image of the whole industry is destroyed.

Problem in basic utilities. Load-shedding is a major problem. Furthermore, gas rates are on the rise.